Consolidated Income Statement
1997 1996 1996
SEK M 6 mths. 6 mths. Full yr.

Net sales 167 58 293
Operating expenses -113 -64 -224

Operating income before depreciation 54 -6 69
Participation in earnings of associated companies 4
Depreciation according to plan, intangible assets -2 -1 -2
Depreciation according to plan, other -26 -3 -41

Operating income after depreciation 26 -6 26
Financial revenues 8 4 17
Financial expenses -24 -13 -44
Other financial items
(incl. short-term balances)
18 393 397

Income after net financial items 28 378 396
Minority interest -5 0 -4

Earnings before tax 23 378 392
Taxes 0 -1 -5

Net earnings for the period 23 377 387
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Consolidated Balance Sheet
SEK M 30 June 97 30 June 96 31 Dec. 96

Intangible assets 205 13 23
Buildings and land 149 42 48
Machinery and equipment 730 16 581
Other fixed assets 0 45 7
Long-term interest-bearing receivables 0 0 0

Total fixed assets 1084 116 659
Inventory 83 22 21
Other short-term receivables 100 31 53
Short-term interest-bearing receivables 5 0 9
Cash and bank (incl. balances) 351 505 537

Total current assets 539 558 620

Total assets 1623 674 1279
Shareholders´equity 536 556 567
Minority interest 23 0 41
Allocations 112 25 85
(of which interest-bearing) (30) (16) (17)
Long-term interest-bearing liabilities 529 0 461
Convertible loan 36 34 35
Other long-term liabilities 137 11 0

Total long-term liabilities 702 45 496
Interest-bearing current liabilities 102 4 22
Other current liabilities 148 44 68

Total current liabilities 250 48 90
Totalt liabilities and shareholders´equity 1623 674 1279
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Key Ratios

1997 1996 1996
6 mths. 6 mths. Full yr.

Return on equity after standard tax (%) 3.0 74.0 75.6
Return on capital employed (%) 4.5 81.4 60.9
Group equity ratio (%) 33.0 82.5 44.3
Parent Company equity ratio (%) 56.5 89.9 91.1
Debt/equity ratio (muliple) 1,2 0,1 0,9
Interest coverage 2,2 30,1 10,0
Earnings per share after actual tax (SEK) 4,2 68,2 70,1
Earnings per share after standard tax (SEK) 3,0 49,3 51,0
Visible shareholders´equity per share (SEK) 97,0 100,6 102,5
Dividend (SEK) 10,0 - -
Total number of shares 5 525 986 5 525 986 5 525 986
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The Group
Sales and earnings
The Group’s sales in the period amounted to SEK 167 M (58). Operating income after depreciation was SEK 26 M (loss: 6). Earnings after tax amounted to SEK 23 M (378). The six-month earnings for 1996 included capital gains of SEK 393 M on the sale of Peltor. In many cases, comparison between the half-yearly figures for 1997 and 1996 is misleading since Transport AB Movera was not consolidated in last year’s six-month accounts.

Acquisition of SBL Vaccin AB
ACTIVE acquired SBL Vaccin AB from the Kingdom of Sweden, with access on 30 June 1997.
This acquisition is one phase of ACTIVE´s investment in biotechnology, and it gives ACTIVE a strong position in Swedish and international research and production. ACTIVE already owns ACTINOVA Ltd. in the UK.
ACTIVE´s acquisition price amounted to SEK 100 M. The contract provides for additional payments, based on SBL’s sales in the period 1997 - 1999. These additional payments may amount to a maximum of SEK 45 M. Depending on the registration of the ETEC and cholera vaccines in the US and the EU, the company may be liable for further payments of SEK 105 M. Total additional payments, which may amount to a maximum of SEK 150 M, have already been fully entered as a liability. When it took over SBL, ACTIVE transferred SEK 200 M to the company for additional research and development.

Financial position
Unrestricted liquidity, including short-term placements, amounted to SEK 515 M (505). Interest-bearing liabilities amounted to SEK 697 M (63) and the interest coverage multiple was 2.2 (30.1). The debt/equity ratio was 1.2 (0.1). The Group’s equity/assets ratio was 33.0 % (82.5).

Group investments during the period amounted to SEK 460 M (-95), of which the acquisition of SBL Vaccin represented SEK 318 M at Group level, after deduction of SEK 97 M for the shareholders’ equity acquired. SEK 139 M was invested via Movera for the purchase of helicopters and vessels. Other investments amounted to SEK 3 M.

SBL Vaccin
Pre-tax earnings in the first six months amounted to a loss of SEK 1 M. Total sales in the first six months amounted to SEK 117 M. This represents a decline compared with the preceding year, primarily due to lower birth rates. The company capitalized project costs of SEK 15 M for the development of ETEC and cholera vaccines. Other R&D expenses have been expensed.
SBL Vaccin’s operations comprise the development and manufacture of vaccines for the international market, sales of vaccines on the Nordic market and the distribution of vaccines on the Swedish market.
The company’s oral vaccines for the treatment of ETEC and cholera are in Phase III of clinical testing, and supplementary clinical studies will be implemented in 1997 and 1998. The aim is registration of these products as pharmaceuticals by about the year 2000, prior to launching on the international market. SmithKline Beecham is the company’s partner in this context, outside the Nordic market. The ETEC vaccine is considered to have very considerable potential, and this product could generate appreciable additional profits for SBL following a full launch. Clinical development of the company’s IPV (Inactivated Polio Vaccine) is also under way, with a view to launching this product on the international market in 1999.
SBL has fully modern facilities for bacteriological production of vaccines in Solna (Stockholm), which are used for the manufacture of the ETEC and cholera vaccines. The company also has a plant for virological production. The company’s plans for 1997 and 1998 include the establishment of resources for the manufacture of recombined proteins, chiefly rCTB used in the ETEC and cholera vaccines.
SBL Vaccin’s position on the Swedish market continues to be strong, with a market share of approximately 50%.
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There was a pre-tax loss of SEK 3 M. All ACTINOVA´s R&D expenditure is expensed.
In early 1997, ACTINOVA established a head office at Cambridge in the UK, and a research oriented subsidiary at Lund in Sweden. Operations are divided into two business areas: affinity proteins and therapeutic products. Both business areas have succeeded in recruiting suitable personnel, and the company has five employees.
The affinity proteins business area has signed agreements with US distributors which are expected to lead to higher sales in the second half of 1997. In the therapeutic business area, the preclinical development of a streptococcal vaccine continues to yield promising results.
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Sales for the period amounted to SEK 98 M (89), and earnings before tax were SEK 14 M (9).
The visible shareholders’ equity in Transport AB Movera amounted to SEK 124 M on 30 June 1997, compared with shareholders’ equity of SEK 70 M on 31 December 1996. A new share issue in January gave the company additional equity of SEK 40 M. ACTIVE´s book value in Movera amounts to SEK 100 M, and ACTIVE´s holding corresponds to 84% of the capital and 96% of the votes.

Helikopterservice’s sales amounted to SEK 36 M (33) and pre-tax earnings were SEK 15 M (10). Two newly purchased Sikorsky helicopters commenced operations in April. The number of passengers in the period totaled 37,000. Inter Air’s business services had sales of SEK 11 M (11), and pre-tax earnings of SEK 0 M (0).

Rederi AB Heron’s sales were SEK 51 M (43), and pre-tax earnings were SEK 2 M (1). Heron owns three modern product tankers, of which two are under time-charter contracts. A fourth vessel of 8,300 dwt is being built in China, with delivery in August 1998. Higher freight rates and a stronger USD have had a positive effect on earnings.
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Sonesson Inredningar
Sales amounted to SEK 57 M (63), and pre-tax earnings resulted in a loss of SEK 3 M (0).
Business continued to be poor in the domestic construction industry, and the investment climate in Germany was unfavourable. This had a negative effect on earnings. Orders improved substantially in May/June and the order backlog was 12% higher on 30 June 1997 than in the preceding year.
Personnel cutbacks have reduced costs significantly, and the number of employees is now 112 (148). It is estimated that a number of new products will be launched in the autumn as a result of Sonesson’s focus on product development. Sonesson will also be establishing sales via dealers in the Netherlands and the UK.
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Parent Company
Sales amounted to SEK 1 M (1). Pre-tax earnings were SEK 22 M (396). Earnings include a compensation settlement of SEK 9 M received from a previous member of the Board. Proceedings against other members of the previous Board are still in progress.
Earnings for 1996 included capital gains in connection with the sale of Peltor amounting to SEK 412 M. Investment amounted to SEK 453 M, which was entirely attributable to the acquisition of SBL Vaccin.

ACTIVE’s structure
The Board’s study of ACTIVE´s structure is in its final phase. Sales and divestment of operations are both under consideration, with the aim of concentrating ACTIVE´s operations on biotechnology.
The Board will be convening a Special General Meeting on 20 October 1997 at 5 p.m. at the Malmö Börshus.

Group pre-tax earnings for 1997 are forecast to be approximately SEK 50 M.

Financial information
A report on 1997 operations will be issued on 26 February 1998.

Malmö, 26 August 1997
Bo Håkansson, President